Putu Setia – Many issues have arisen unexpectedly from the uproar over 3 kilogram LPG canisters which are commonly called "melon gas" because of their shape and colour. The big question first of all is why the government acted so haphazardly in regulating one of the necessities of life for so many ordinary people.

Melon gas was suddenly prohibited from being sold by mall retailers near residential areas. Gas could only be sold at the agents at official depots that had been designated by the government, which were not necessarily located in every village or ward. So everyone had to congregate there and people had to queue for hours when it was hot and rainy.

Minister of Energy and Mineral Resources Bahlil Lahadalia the target of condemnation because of the policy. But the President's communication office, which formally is the Palace spokesperson, was also criticised for supporting the move by Lahadalia.

Yet President Prabowo Subianto himself ordered restoring the 3 kg LPG trade mechanism to small retailers that evening. Prabowo announced this through House of Representatives (DPR) deputy chairperson and Sufmi Dasco Ahmad.

So what is revealed from all this? The President's communication office clearly did not have access to the president. How does this institution position itself as a Palace spokesperson? That Prabowo is closer to Ahmad, who of course is connected through the same party. Ahmad is daily chairman of Prabowo's Greater Indonesia Movement Party (Gerindra).

But the chaotic government communication still continued even after this. The Minister of Energy and Mineral Resources then rectified the problem. All 3 kg LPG retailers were upgraded to depot agents. Although of course they had to register, which involved a number of requirements. For example, capitalisation, the legal entities, taxpayer identification number, warehouse, and so on.

Meanwhile LPG retailers are small shops that sell all kinds of basic needs. The gas they sell is only "entrusted to them from an agent", at most 10 canisters, with a profit margin of only around 2,000 rupiah per cylinder. Strangely, the state owned oil and gas company Pertamina announced there was no such difficult registration process required to become a melon gas agent. Which information was correct? Chaotic.

Was there anything good thing that could be used as a lesson from this case other than condemning Lahadalia sadistically and brutally? This is the right time for the government to reduce the subsidies on melon gas that continues to swell and undermine the budget every year. The government has long run out of reasons on how to put a brake on the melon gas subsidy.

Various methods have been undertaken, including making allusions so rich people do not to use subsidised gas. Written on melon gas canisters are words "only for the poor", with the hope that well-off people feel ashamed to use the rights of the poor.

Such allusions are good. Unfortunately, this nation has long lost any sense of dignity and allusions like that are not effective anymore. A nation that has began to favour insults, condemnation and speaking without manners, which is exacerbated by the minimal good examples set by public leaders, indifferent to appeals to share in terms of social life. The important thing is that there is an opportunity, to be taken advantage of, "If there a cheap melon gas, why buy a more expensive one?"

Pertamina distributes subsidised melon gas at a price of 12,750 rupiah per cylinder or 4,250 rupiah per kg. This price has not changed since 2008. At official depots, the highest retail price (HET) is set by local governments with consideration of transportation costs. Then the depot agent hands them over to retailers. In seeking a profit of 1,000 or 2,000 rupiah, small shops sell them at 19,000-21,000 rupiah. This is what Lahadalia considered was too expensive for the public so that the melon gas trade system needed to be revamped.

But why did the small retail shops have to be the victims? Isn't the highest retail price (HET) at the depot already too high, costing 18,000 rupiah per canister? The profits of depot agents are very large, reaching 5,250 rupiah per cylinder. The government should cut the profits of depot agents by lowering the HET.

Or while the public is used to it – and doesn't complain – with a melon gas retail price of 21,000-22,000 rupiah, the government could raise the subsidy price to 15,000 rupiah per canister without raising the HET at the depot. That would be quite a reduction in subsidies.

Of course it could still tighten the requirements such as by requiring buyers to show ID cards, although this does not guarantee it will stop the corrupt practice of syphoning off subsidised melon gas cylinders to fill non-subsided cylinders. Understand, the price of non-subsidised LPG is considered too expensive being up to 192,000 rupiah for a 12 kg cylinder.

It is also difficult to appeal to the rich to switch to non-subsidised gas amidst a chaotic crisis of confidence. A breakthrough is needed without causing problems for the ordinary people. Is it necessary to start raiding the kitchens of big houses?

[Translated by James Balowski. The original title of the article was "Belajar dari Heboh Gas Melon".]

Source: https://www.tempo.co/kolom/belajar-dari-heboh-gas-melon-1204318